Toyota Plans Expansion in Indonesia
13 November 2012 - Wall Street Journal
Toyota Motor Corp. said it would increase its bet on Indonesia, planning to spend up to $2.7 billion to expand its capacity to better target the growing middle class in Southeast Asia’s largest economy.
Toyota President Akio Toyoda and other executives met with Indonesian President Susilo Bambang Yudhoyono and his ministers over the weekend and outlined the auto maker’s Indonesia expansion plans. Toyota said the plans would cost around $1.3 billion over the next five years but could more than double as Indonesia’s economy grows.
The Toyota group—which includes the best-selling cars of Daihatsu Motor Co. —has more than 60% of the booming Indonesian passenger-vehicle market.
“Toyota has a long history in Indonesia spanning more than 40 years,” Mr. Toyoda told reporters Saturday. “It has a huge population, stable politics and a growing economy, and meeting with the president and ministers has made me more convinced of the country’s potential.”
Included in the investment will be a previously unannounced purchase of 150 hectares on the outskirts of Jakarta for a new engine plant. Toyota didn’t disclose what the cost of that land or the new facilities would be.
It also didn’t give a breakdown of how the potential $2.7 billion would be invested. The figure includes some investments that already had been announced.